Stocks fell Friday after a report showing increased consumer inflations sparked fears that the Federal Reserve will be less willing to cut interest rates. The Dow Jones industrial average lost more than 178 points after the U.S. Labor Department said the consumer price index rose 0.8 percent in November. The report concerned investors because the rising inflation is likely to temper Federal Reserve enthusiasm for lowering interest rates. Investors were already unhappy to see the Fed lower the key federal funds interest rate by only a quarter point, rather than the half point cut many had hoped for. The inflation report's repercussions were clearly felt on Wall Street, where the Dow Jones industrial average fell 178.11, or 1.32 percent, to 13,339.85. Broader stock indicators also fell. The Standard & Poor's 500 index dropped 20.46, or 1.37 percent, to 1,467.95, and the Nasdaq composite index fell 32.75, or 1.23 percent, to 2,635.74. The New York Stock Exchange composite fell 165.91 to 9,698.37, while the American Stock Exchange composite dropped 18.57 to close at 2,351.84. The Russell 2000 index of smaller companies fell 15.53, or 2.02 percent, to 753.93. The price of a barrel of light, sweet crude oil for January delivery fell 98 cents to $91.27.
